XAG/USD bulls seek $24.00 breakout for fresh entries

  • Silver edges higher past crossing short-term resistance line, now support.
  • Bullish MACD, trend line breakout favor buyers but 100, 200-SMA confluence offers strong hurdle to the north.
  • Three-week-old horizontal area adds to the downside filters.

Silver (XAG/USD) stays directed towards the $24.00 threshold, around $23.85 amid the initial Asian session on Thursday.

The bright metal broke an eight-day-long falling trend line recently, backed by bullish MACD and a sustained bounce off August 20 to September 03 upside.

However, a convergence of 100 and 200-SMA seems to challenge the bulls around $24.00.

Hence, the XAG/USD buyers need a clear upside break of $24.00 despite the trend line breakout and bullish MACD.

Following that, 23.6% Fibonacci retracement (Fibo) near $24.40 and the monthly high of $24.86 should return to the charts before directing the silver bulls to August tops near $26.00.

Meanwhile, failures to cross the $24.00 hurdle will push the traders to wait for a downside break of the resistance-turned-support around $23.75.

Should silver sellers keep reins past $23.75, the stated 61.8% Fibo and a horizontal area from August 27, respectively near $23.60 and $23.35, will be important to watch.

Overall, 100-SMA crossover, bullish MACD and trend line breakout favor the XAG/USD buyers.

Silver: Four-hour chart

Trend: Further upside expected

 

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